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Bosch wins grant under new investment promotion category

Robert Bosch Power Tool Kft., a Hungarian unit of German engineering giant Bosch, will invest HUF 14 billion to set up a European center of competence for batteries and expand its power tool assembly capacity in Miskolc (NE Hungary), Minister of Foreign Affairs and Trade Péter Szijjártó said on Tuesday.   

The government will support the investment with HUF 3.4 bln non-returnable state funding, awarded within the framework of a new program that supports technology-intensive investments, Szijjártó said, according to official government website kormany.hu.  

Szijjártó told reporters that under the new investment promotion category, the level of non-returnable state cash funding will be calculated based on what new technology the investment brings into the country and to what extent it increases the competitiveness of the given sector of industry.

“We are calling this technology-intensive investment funding; this is a new category,” Szijjártó said.

“The relationship between Hungary and the German machine industry is traditionally excellent, and some 29% of the investments realized in Hungary are performed by German investors,” the minister added.

Managing Director László Fükő said Bosch will build a 20,000 square-meter production hall in Miskolc and move 1,200 workers there from a rented building, cutting costs and creating the opportunity for later expansion. The hall will be completed at the end of 2019, he added.   

Robert Bosch Power Tool was established in Miskolc in November 2001. The plant employs about 2,400 workers.